5 Alternative Strategies to Access Funds for Your Startup

Every startup sooner or later, should explore alternative ways to finance its operations, either to develop or to deal with its scale operations.

New companies in general concentrate on one or two ways of subsidizing their operation leaving different other sources.

However, venture capital investment is supported as a well-known instrument for startups, with more than $164 billion invested in 2020 with the pattern on the rise.

 Alternate ways to access funds!

Crowdfunding 

Most recently, crowdfunding platforms have become popularly used by founders as a source of finance for entrepreneurs seeking out alternative financing options beyond the traditional model of other financial institutions. Crowdfunding generally involves drawing small amounts of funds from many people, which is gaining.

Incubator or Accelerator

Early-stage startups may consider incubators and accelerators as financing options. Although they are used interchangeably, there are few fundamental differences between incubators and accelerators.  Incubators help entrepreneurs refine their business ideas and build their businesses from scratch. Startup accelerators offer budding businesses that already have a minimum viable product (MVP) in simple terms.

Venture Capital as a Service 

Venture Capital-as-a-Service grew out of traditional venture capital firms and offers startups a blend of capital and business value through a network of corporate funds. This model is good for startups looking to partner with international venture capital firms.

Business Grants

In the early stages of starting, you may want to consider a grant.

Business grants are funds awarded to business owners and entrepreneurs that help them establish or grow their new businesses. They are usually provided by governments, companies, foundations, or trusts. Unlike loans, grants are not repaid.

Launch competition

Launch contests are perfect for startups looking to raise equity-free funds. Entrepreneurs present their business ideas to a panel of judges in hopes of winning the cash prize or investment capital. These competitions take startups into the world of venture capital and angel investing

Leadspace at HubOne

Hub One provides necessary infrastructure for tech start-ups, as well as capacity building events, to enable them to focus their limited resources on their business development. Routinely, Hub One will host several incubation programs, hackathons and pitches to support and provide a platform for tech start-ups.

Hub One is located on 10, Hughes Avenue, Alagomeji, Yaba, Lagos. If you’re building an amazing tech-enabled company and  interested in joining the Hub One community, join other amazing entrepreneurs that are currently growing their businesses at Leadspace.

Call/WhatsApp 07066607441 or email info@theleadspace.co



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